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People's Daily Online) 13:41, December 30, 2013
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Comments twitter facebook Sina Microblog reddit The Central Work Conference on urbanization has proposed that the government shouldestablish a pluralistic and sustainable financial mechanism, aiming to solve the problem offunding in the process of urbanization.
Where will the money come from? This is an issue that must be dealt with. Urbanization isnot only an important way to expand domestic demand, but a vital channel of investment.
In practice, relevant investment is directed to two main targets: 'hardware' and 'software'.Hardware represents items such as basic facilities and utilities like water, electricity, road,gas, homes, schools and hospitals; software consists of social security support likeemployment, health-care, education, and minimum living and endowment insurance.Together, these two areas represent the basic support systems for civil life; each isindispensable and requires support through investment.
The practical difficulty facing many locations is a shortage, or even a complete absence, offunds for investment. On the hardware side, as some local governments do not haveenough capital to improve their infrastructure, they have to borrow. Consequently, theyare always under pressure to meet their debt repayments.
Some local governments try to solve this problem by asking property developers to buildroads and to construct infrastructure; in return, they offer a range of inducements to thedevelopers in terms of land development, and help them sell their houses, thus forcingrural residents to become 'urban citizens'.
In terms of software, some local governments face even greater challenges. In many bigcities, many new arrivals are tormented by the problems of education and health-care, andin some newly developed or expanding cities, many new residents have fears that gobeyond their social security entitlement and touch on their ability to find any kind of stablejob.
【1】 【2】（Editor：ZhangQian、Yao Chun）
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